H&M Profit Drop

H&M Profit Drop


Shop

2018 has not started in the best way for the retail brand H&M with controversy surrounding their clothing advertisements and now bad news about their performance in 2017 as shoppers move online and stores struggle to attract large numbers of customers.

Biggest Fall in Profits

H&M have announced a profit drop of 14 percent for the period of November 2016 to November 2017. This is their biggest drop in profits for the last six years. This result can partly be attributed to their unexpectedly poor performance in their last quarterly figures where their profits fell by a huge 34 percent.

The share price for H&M has also seen a drop of over 9 percent which has taken their share price to a nine year low point. The H&M chief executive, Karl-Johan Persson, has issued a statement saying that all retailers are being challenged by changes to the industry and that he expects this to continue throughout 2018. He added that H&M do not expect to reach their target for growth in sales this year. The sales growth figure had been set at 10 – 15 percent for 2018.

New Plans

In a bid to improve their financial performance, H&M have announced plans to close approximately 170 stores and to launch a new discount store, Afound, later in 2018. H&M also intend to launch one more independent brand in their stores this year in order to continue attempts to widen their customer demographic.

The retailer will also start to sell the H&M Home and H&M brands on Tmall, which is an e-commerce site, in March 2018.

Reinvestment

Although H&M have announced that their dividend to shareholders will remain unchanged, it has been announced that the board of directors is currently considering whether to provide all of their shareholders with the chance to reinvest their share dividend in new shares.

News written by the team of The-shops.co.uk The-Shops.co.uk

News in the same category

Another 110 M&S stores are closing in the UK

Another 110 M&S stores are closing in the UK

At first read, the headline seems to bode more gloom and doom for the UK retail sector, but all is not as it seems. M&S are in the midst of a major restructuring programme, which has already seen the closure of 35 stores in 2018.

  • Shop
Sainsbury's testing a new set-up to shop faster

Sainsbury's testing a new set-up to shop faster

Sainsbury's currently testing a new layout in six supermarkets in the UK. The goal is to make shopping even more easy and fast.

  • Shop
  • Way of consumption
M&S decide on clothing store closures and slower expansion for Simply Food

M&S decide on clothing store closures and slower expansion for Simply Food

The struggles faced by Marks and Spencer in the competitive UK retail market have been well documented and their most recent economic results have added to their woes.

  • Shop
  • Food/Health
Luxury Brand Loewe to Open New Bond Street Store in London

Luxury Brand Loewe to Open New Bond Street Store in London

Luxury Spanish brand Loewe is opening a new flagship store in Bond Street in London. Looking to strengthen its presence in the UK, the new outlet will be set over three floors, with 5,380 square feet of retail space.

  • Shop
H&M Profit Drop
Chain stores related to the news
H&M
  • 203 store H&M listed
> All news H&M